If approved, the move marks a significant step towards providing investors with transparent and regulated access to crypto within familiar product structures.
Grayscale Investments, one of the world’s largest asset management companies, has submitted a formal request to the US Securities and Exchange Commission (SEC) for approval to convert the Grayscale Ethereum Trust (ETHE) into a spot Ethereum Exchange-traded fund (ETF). According to an official press release on Monday, the Form 19b-4 application was filed by the New York Exchange (NYSE) Arca on October 2, following the approval of the first Ether ETF.
The Grayscale’s Ethereum Trust officially debuted in March 2019 and has since grown to become a prominent player in the crypto investment space. In May 2019, the fund received a public quotation and currently accounts for approximately 2.5% of the total circulating supply of Ethereum.
Grayscale to Offer Familiar Products to Customers
As the world’s largest Ethereum-based investment product, Grayscale’s Ethereum Trust manages assets of nearly $5 billion. In October 2020, it took a notable step in enhancing transparency by becoming an SEC reporting company, providing investors with direct insights into the performance of its crypto investment products.
Additionally, Grayscale said that the Ethereum trust is accessible to around 250,000 investors with over 17 different crypto investment products. Currently, the company offers investors the opportunity to explore the crypto industry with 17 different offerings ranging from Grayscale Solana Trust (GSOL), Zcash Trust (ZCSH), and the Grayscale Ethereum Trust, which the company wants to transform into a spot ETF.
If approved, the move marks a significant step towards providing investors with transparent and regulated access to crypto within familiar product structures.
“At Grayscale, our unwavering commitment is to offer investors transparent and regulated access to crypto through familiar product structures. As we file to convert ETHE to an ETF, the natural next step in the product’s evolution, we recognize this as an important moment to bring Ethereum even further into the US regulatory perimeter,” said Grayscale CEO Michael Sonnenshein.
Grayscale Wins Court Case Against the SEC
The company’s global head of ETFs, David LaValle, said the move is an important milestone for Grayscale as the company continues to build its best-in-class ETF team, product suite, and capabilities –the ETF team, serving investors as a globally respected asset manager.
The asset manager also reiterated its commitment to shepherding its crypto products through a deliberate four-phase lifecycle, with the fourth and final stage being conversion to an ETF.
Meanwhile, the company’s application to convert ETHE into a spot Ether ETF comes after its recent victory against the SEC in August.
Recall that a federal court in the United States ruled in favor of the company, asking the Commission to review its application to convert its Grayscale Bitcoin Trust (GBTC) into an ETF.
In the past year, the SEC had declined the application, citing that the proposal failed to meet the anti-fraud and investor protection criteria.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.